The markets took a steep drop on Tuesday, with the S&P 500 tumbling 1%, as traders once again began to fret about how long central bank easing can last. The day was off to a better start Wednesday, with markets in Europe trading close to the flat-line.

"Global markets appeared to have calmed but it is unclear whether this is a temporary pause or shift in market sentiment," analysts at Nomura wrote to clients.

A round of data on the eurozone manufacturing sector came in slightly weaker than economists expected. Industrial production across the struggling currency bloc was flat in April, compared to forecasts that it would tick up 0.4%.

The only U.S. data release comes in the afternoon, from the Treasury Department. The U.S. federal budget deficit is forecast to have narrowed to $110 billion in May from $124.6 billion the month prior.

On the corporate front, Apollo Tyres said it would buy Cooper Tire & Rubber (CTB) for $35 a share in cash in a roughly $2.5 billion deal. Pfizer (PFE) settled with Teva Pharmaceuticals and Sun Pharmaceuticals for $2.15 billion over a patent-infringement claim.

Energy futures were lightly changed ahead of the weekly inventory report from the Energy Department. The benchmark U.S. crude oil contract rose 13 cents, or 0.14%, to $95.50 a barrel. Wholesale New York Harbor gasoline dipped 0.2% to $2.817 a gallon. In metals, gold was little changed at $1,377 a troy ounce.

Foreign Markets

The Euro Stoxx rose 0.59% to 2699, the English FTSE 100 climbed 0.36% to 6363 and the German DAX edged up 0.07% to 8228.

In Asia, the Japanese Nikkei 225 tilted lower by 0.21% to 13289 and the Chinese Hang Seng sold off 1.2% to 21355.